LKQ (NASDAQ:LKQ) Issues Quarterly Earnings Results, Misses Estimates By $0.11 EPS

LKQ (NASDAQ:LKQ) announced its earnings results on Thursday. The auto parts company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by ($0.11), FiscalAI reports. The business had revenue of $3.32 billion for the quarter, compared to analyst estimates of $3.36 billion. LKQ had a return on equity of 10.84% and a net margin of 3.37%. The company’s revenue for the quarter was down 5.1% compared to the same quarter last year. During the same period last year, the firm earned $0.84 EPS.

Here are the key takeaways from LKQ’s conference call:

• Third-quarter results deteriorated sharply: Revenue fell 5.1% to approximately $3.3 billion, adjusted EPS declined to $0.50 from $0.84, and GAAP EPS was a $0.09 loss. Full-year 2026 guidance was suspended due to weak performance and the leadership transition.
• Europe remained the primary drag. Organic revenue declined 9.8%, segment EBITDA fell $94 million year over year to $68 million, and the ERP disruption in Germany reduced quarterly EBITDA by an estimated $43 million; issues in the U.K. and Benelux also caused market-share losses.
• The board appointed Sal Abbate as CEO effective December 15, engaged Alvarez & Marsal to stabilize European operations, and suspended the strategic review, including the Specialty sale process. These actions prioritize operational recovery but remove near-term clarity around potential strategic value realization.
• North America showed resilience despite soft demand. Organic revenue declined 2.4%, but segment EBITDA margin expanded 40 basis points to 14.4% through pricing and cost discipline, while alternative-part utilization reached a record nearly 41%.
• Specialty delivered 0.9% organic revenue growth despite pressure from higher fuel costs, interest rates and trade tensions, while third-quarter operating cash flow reached $411 million and free cash flow was $372 million. LKQ ended the quarter with approximately $1.7 billion of liquidity and no significant debt maturities until 2028.

LKQ Trading Up 2.9%

Shares of NASDAQ:LKQ traded up $0.49 during midday trading on Thursday, reaching $17.68. 4,744,733 shares of the company’s stock were exchanged, compared to its average volume of 3,197,794. The firm’s 50 day simple moving average is $23.07 and its two-hundred day simple moving average is $27.37. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.58 and a quick ratio of 0.61. The stock has a market cap of $4.47 billion, a price-to-earnings ratio of 9.81 and a beta of 0.87. LKQ has a fifty-two week low of $16.85 and a fifty-two week high of $37.13.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Robert W. Baird cut their price target on LKQ from $30.00 to $23.00 and set an “outperform” rating for the company in a report on Monday. Raymond James Financial set a $30.00 price target on LKQ in a report on Friday, July 31st. Stephens lowered their price target on shares of LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research report on Tuesday, July 21st. Zacks Research cut shares of LKQ from a “hold” rating to a “strong sell” rating in a research report on Monday, August 3rd. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $30.00 target price on shares of LKQ in a report on Friday, October 23rd. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $27.07.

LKQ News Summary

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ reported adjusted third-quarter earnings of $0.50 per share, exceeding the Zacks consensus estimate of $0.48. The result may provide some support, although it was below the $0.84 earned in the year-ago quarter. LKQ Beats Q3 Earnings Estimates
• Positive Sentiment: Barclays upgraded LKQ to Overweight from Equal Weight, offering a more favorable analyst view that could help sentiment, particularly after the stock’s steep decline and relatively low valuation. LKQ Raised to Overweight at Barclays
• Neutral Sentiment: Management is launching a strategic and operational reset. This could improve profitability over time, but the benefits are not yet visible and execution remains a key risk. LKQ Reports Q3 Loss and Launches Reset
• Negative Sentiment: LKQ suspended its full-year 2026 guidance and paused its strategic review as European results lagged. Removing financial guidance makes valuation and earnings expectations more difficult for investors to assess. LKQ Suspends Guidance and Pauses Strategic Review
• Negative Sentiment: Third-quarter revenue was approximately $3.32 billion, below the $3.36 billion analyst estimate and down 5.1% year over year. LKQ also missed the broader consensus EPS estimate of $0.61, highlighting pressure on both sales and profitability. LKQ Third-Quarter Results
• Negative Sentiment: Barclays’ upgrade was partly offset by a Baird price-target reduction, a Zacks Strong Sell rating, and a securities-law investigation announcement. These developments add caution around LKQ’s outlook and governance. LKQ Investor Investigation

About LKQ

LKQ Corporation is a global distributor of automotive parts and accessories. The company supplies replacement parts, components and equipment to professional repair shops, collision-repair businesses, insurers, dealerships and other commercial customers. Its product offerings include recycled original-equipment parts, aftermarket parts, specialty vehicle products, tools and equipment.

LKQ’s operations include the procurement, dismantling and distribution of salvaged vehicles, allowing it to provide recycled engines, transmissions, body panels and other components.